Price ceiling and price floor

Assignment Help Business Economics
Reference no: EM1312551

Price Ceiling and Price Floor

Introduction:

Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.

 Problem Statement 1:

Using the data provided in the accompanying table, fill in the last column and then provide answers to the following:

Price

Quantity Demanded

Quantity Supplied

Surplus (+) or Shortage  (-)

$12

7

9

 

$11

8

8

 

$10

9

7

 

$9

10

6

 

$8

11

5

 

$7

12

4

 

 

  • Identify whether the number is a surplus, shortage, or neither.
  • What is the efficient quantity?
  • What price results in the efficient quantity? Using the data from the table, draw graphs of a demand and supply curve and indicate the point of equilibrium with the help of the Grapher tool. Press the Alt+PrintScrn keys simultaneously. Open a Microsoft Word document and insert the image by pressing the Ctrl+V.
  • Suppose a price ceiling of $8 is established. Does a surplus or shortage result? What is the amount of surplus or shortage?
  • Suppose a price ceiling of $12 is established. What is its effect?
  • Suppose a price floor of $12 is established. Explain its effect.

 

Deliverables Criteria:

Submit answers in a minimum of 100 words in a Microsoft Word document.

Problem Statement 2:

Deficits and Debt

Introduction:

Debt is a four-letter word that has put many nations into trouble. There is a cause for both personal and national debt.

Write a brief essay on Question 2 from the "Thinking Critically" section on "Deficits and Debt-Do We Spend Too Much?" on page 367 of the textbook.

Research the current size of the national debt as part of your answer.

Refer to the Congressional Budget Office Web site:

https://www.cbo.gov/

Deliverables and Format:

Submit answers in not more than 300 words in a Microsoft Word document. Be sure to cite your sources using APA style.Font: Arial; 12

Line Spacing: Double

Reference no: EM1312551

Questions Cloud

Analyze the methods of capital investment appraisal : Question: Analyze the methods of capital investment appraisal , Explain briefly…
Prepare a schedule of cash collections : Prepare a schedule of cash collections for January, February, and March and for the quarter in total, Prepare a production budget for January, February, and March and for the quarter in total.
Consider a logic function with three outputs : Consider a logic function with three outputs,  A ,  B , and  C , and three inputs,  D ,  E , and  F . The function is defined as follows:  A  is true if at least one input is true,  B  is true
Price ceiling and price floor : Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price.
Read case and answer questions : Carefully read the case and craft an essay of about 1000 words in length in which you respond to the following: . Identify the central moral issue(s) in the case. Who stands to be harmed and helped, and how? . Based on our reading and class discussio..
Human interventions in forest environments : Essay 1 – Human interventions in forest environments, The civilization of Easter Island (Rapa Nui) catastrophically collapsed over a short period of time.
Unplanned actions may lead to a mess : "Management is a series of functions to be performed in a sequential order". Explain the statement describing Management Process in short.
Construct a well-defined recruitment policy for an hotel : "Human Resource Planning is the continuous and critical  process for an organization" - Comment.   Construct a well-defined Recruitment policy for an Hotel Industry, for all levels.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd